"There are some people who could argue that the gas we've had certified is worth a whole lot more than that," Mr Henderson said.

"We've spent $120 million and many people would argue that if the Government didn't want us to continue exploring, particularly after we've done the right thing year after year, then $120 million is the right figure.

"The $80-million figure is the capitalised amount that we wrote off our books last year."

Mr Henderson said a majority of the company's 5,000 shareholders would have to agree before any offer could be accepted.

"I think if you did a survey of our shareholders you would find a very strong preference for us to do what we were set up to do," he said.

"Which is to explore for gas, find it and develop it for New South Wales and for our shareholders.

"That's exactly what we intend to do.

"We'd like to drill [Bentley], we'd like to continue exploring in the area and we'd like to produce gas."

Government appeal would have 'wasted money': Industry

Industry opponents Gasfield Free Northern Rivers spokesman said another court case would have been a waste of money.

Aiden Ricketts said the Government should instead change the legislation which controls the industry.

"What we said since the day we walked out of the court room is 'don't bother appealing it, that will just waste taxpayers' money and get us caught up in pure technicalities under the existing legislation'," Mr Ricketts said.

"What we need to do is bring back the public-interest test for the cancellation and suspension of licences and approvals.

"Then the Government will effectively have control of the industry again."

Mr Ricketts said there is speculation about massive compensation payouts.

"I would find it offensive if taxpayers' money is spent on bailing out speculative companies in this way," he said.

"I think the Government needs to get control of the industry, and then go back into the negotiation room with Metgasco."

New South Wales Energy Minister Anthony Roberts has so far declined to comment.